SRINAGAR: Secretary State Vigilance Commission has issued a circular regarding improving Vigilance Administration, Increasing Transparency and cutting delays by e-payments and e-receipts by Government Organizations
The Secretary in the circular has observed that inordinate delays are being caused in making payments to vendors, Contractors and other suppliers to the Government Organizations, Public Sector Undertakings, Societies and the Corporations. Apart from increasing the cost of procurement such delays at times lead to opportunities for corruption. Resorting to mechanism of e-payments and e-receipts can be used as an effective tool to improve the transparency and efficiency in governance and to cut down on delays in making payments.
In the last few years tremendous progress has been made by the banking sector, in computerization including net-working of branches, making it possible to do e-banking by making use of facilities like Electronic Clearing System (ECS) and Electronic Fund Transfer (EFT) etc. These facilities are available in most of the banks including the Jammu and Kashmir Bank, Public Sector bands as well as in private banks. A large number of offices including Public Sector Undertakings are already making e-payments to vendors, contractors and employees instead of making payments by issues of cheques.
The public perception in general has been that delay is more often intentionally caused in the issues and dispatch of Cheques by the accounts and finance wings of a large number of Government Organizations with ulterior motives of undue pecuniary gains. As the e-payment facility is already available in urban centre and towns, in order to curb the above mentioned malpractices and to change the general perception of public, the State Vigilance commission in exercise of powers conferred on it under section 8(1) (h) of the J&K State Vigilance Commission Act, 2011 has issued instructions for compliance by all Government Departments, PSUs, banks and other agencies over which the Commission has jurisdiction.
The instructions include the payment of all suppliers, vendors, contractors and refunds of various nature and other payments which the Organizations routinely make shall be made through electronic payment mechanism at all centres where such facilities are available in the banks.
Salary and other payments to the employees of concerned organizations at such centres shall also be made through electronic clearing system (ECS where such facilities exist).
As the organizations will have to collect bank account number from the vendors, suppliers, contractors, employees and others who have interface with the Government organizations, concerned organizations may plan to switch over to e-payment system in a manner so as to complete the process in three months.
These instructions are applicable to all cities and other urban and rural centres where links provide ECS/EFT and similar other facilities. In those of the remote areas where the bank branches do not exist or the existing bank branches do not have internet facility, the prevailing systems of making payments through Cheques shall continue. However, the procedure prescribed hereinbefore shall be followed in these areas also within a period of three months from the date of introductions of e-banking in such areas. The departments, PSUs, banks etc should also provide an enabling environment and facilities so that businessmen and other citizens can make payment of Government dues and payments to PSUs electronically.
In addition to significantly reducing processing costs in preparation and dispatch of cheques, the above measures also reduce the risk of frauds by providing speed, efficiency and reconciliation of accounts.
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